DISCLAIMER

 

07-0775R


RESOLUTION AUTHORIZING A REQUEST FOR HUD HOME FUNDS FOR THE 2008 PROGRAM YEAR, AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR HOME FUNDS AND AUTHORIZING CONTRACTS.

BY COUNCILOR STAUBER:

     WHEREAS, City Council Resolution No. 07-0773, adopted December 17, 2007, approved the FY 2008 action plan portion of the Duluth consolidated plan for housing and community development FY 2005-2009; and

     WHEREAS, the secretary of HUD is authorized to make grants to cities and/or counties to finance local community development programs, approved in accordance with the provisions of Title I of said act, as well as grants under the Cranston-Gonzales National Affordable Housing Act of 1990, as amended, (the HOME program) and the Stewart B. McKinney Homeless Assistance Act of 1987, as amended (the emergency shelter grant - ESG - program).

     NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels as set forth below:

2008 HOME PROGRAM - FUND 260, PROJECT CD08HM

SUB

PROJECT    ACTIVITY   PROJECTS                                  AMOUNT

GN08        1736       Homeless rental asst. program (TBRA)- HRA $ 37,950

GNO8       1737       TBRA admin - HRA                          $ 3,800

CH08       2270       City Homes Ph. VIII - predevelopment - NCLT $ 20,000

CH08       1226       Predevelopment - Center City Housing Corp. $ 17,950

CH08       2271       Rehabilitation - resale - NCLT            $225,000

CH08       1050       Supportive housing - AICHO                $162,000

CH08       2272       MACV-Duluth housing - NCLT                $141,600

GN08       AD01       Program administration                    $ 72,100

                       Homeowner development project             $134,562

           __________________________________________________________________

                 Total                                           $814,962

     BE IT FURTHER RESOLVED, the following are hereby designated as the financial sources for the above program:

     Year 2008        HOME grant                   $759,000

     Year 2006        Program income               $ 55,962

     Total                                          $814,962

     BE IT FURTHER RESOLVED, that the proper city officials are authorized to make the following transfers in prior year community development accounts:

                                         Original   Amount     Revised

                                         Budget     of Change  Budget

2006 CD06HM

Bal. Sh. 2220    Lien repayments        $ 55,962   -$ 55,962   -0-

                 $55,962 - Total amount reprogrammed

     BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.

     BE IT FURTHER RESOLVED, that the appropriate city officials are authorized to execute the appropriate agreements with these agencies upon receipt of approval of HUD funds.


STATEMENT OF PURPOSE:  This resolution reflects comments from organizations and citizens as related to funding for the Home Investment Partnerships Program (HOME). In addition to citizens, the Neighborhood Forums and the Community Development Committee (CD Committee) each played a role in the recommendations contained in the resolution. There was also a 30-day public comment period from November 2, 2007 to December 3, 2007, on the 2008 annual Action Plan, which includes recommended funding for the 2007 CDBG, HOME, and ESG programs. The CD Committee held a public hearing on December 4th to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 4, 2007, with the concurrence of the Community Development Manager.


     Source of Funds:

     $ 759,000  in new 2008 HUD HOME funds

        55,962   in program income and reprogrammed funds

     $ 814,962


The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:

     (a)  Allocates funds by project for the 2008 HOME program.

     (b)  Authorizes contracts for the activities upon receipt of funding contract.


Contracts will have the appropriate addendums for affordability restrictions and recapture or resale provisions to ensure compliance with HUD regulations.


The following projects are recommended for funding in the FY 2008 HOME Program:


08-HM-01

Project Name: Homeless (Tenant-Based) Rental Assistance Program - Duluth HRA

Project Description: Through the TBRA Program, HRA will provide housing vouchers to homeless families. The program functions under the guidelines of the Section 8 Housing Program.

Location: 222 East Second Street

Goal: 7 Households

Amount Recommended: $41,750


08-CD-01

Project Name: City Homes Phase VIII - NCLT

Project Description: CHDO pre-development activities to prepare for the construction and/or rehabilitation of 9-12 affordable homes in scattered sites in the city of Duluth during FY 2009. NCLT will apply for 2009 HOME funds for the construction and/or rehabilitation of these housing units.

Location: 206 West Fourth Street

Goal: 1 Organization

Amount Recommended: $20,000


08-CD-02

Project Name: Supportive Housing Pre-Development Project - Center City Housing Corp.

Project Description: CHDO pre-development activities to prepare for the acquisition and rehabilitation of up to 30 units of permanent supportive rental housing units during FY 2009.

Location: 105-1/2 West First Street

Goal: 1 Organization

Amount Recommended: $17,950


08-CH-01

Project Name: Rehabilitation B Resale - NCLT

Project Description: Northern Communities Land Trust (NCLT) will create safe, decent, permanently affordable homeownership opportunities for low to moderate income households through the rehabilitation and resale of nine blighted single family homes in the City of Duluth.

Location:Citywide

Goal: 9 Housing Units

Amount Recommended: $225,000


08-CH-02

Project Name: Supportive Housing - AICHO

Project Description: Gimaajii-Mino-Bimaadiziyaan (Gimaajii) will provide 29 units of affordable housing consisting of 0, 1, 2 and 3 bedroom apartments. This housing will serve low income persons who have been or are at risk of becoming homeless. The American Indian Community Housing Organization can be reached in their offices at 419 N. 1st Ave W., Duluth, MN, 55806.

Location: 202 West Second Street

Goal: 29 (13 HOME Units)

Amount Recommended: $162,000


08-CH-03

Project Name: MACV-Duluth - Permanent Supportive Rental Housing - NCLT

Project Name: A CHDO project, Northern Communities Land Trust (NCLT) will acquire and rehab a building to provide 8 units of permanent supportive housing for homeless veterans. NCLT will serve as the CHDO developer of the project, and the Minnesota Assistance Council for Veterans (MACV) will own and operate the building. NCLT offices are located at 206 West 4th Street, Duluth, MN.

Location: To be determined

Goal: 8 HOME Units

Amount Recommended: $141,600


Project Name: Home Owner Development Program

Project Description: The funds may be utilized for housing construction 12, single-family rehab. 14A, or Multi-family rehab. 14B. These funds will be transferred from this program to individual projects through a City Council contract amendment. Performance measurements will be added in IDIS including the indicator amount. These funds may be added to a new program or activity that may be developed through an Request For Proposal process.

Location: 407 City Hall

Goal: To be determined

Amount Recommended: $134,562